hotels

Starwood Hotels & Resorts Worldwide has accepted a $13.6bn acquisition offer from Marriott International, rejecting China’s Anbang Insurance Group’s $13.2bn bid.

According to the latest offer, shareholders of Starwood will receive $21 for every share of Starwood.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The latest offer from Marriott has considerably increased the cash it would pay to shareholders of Starwood; its previous offer had been 0.92 shares of Marriott for every share of Starwood and $2 in cash.

If Anbang’s offer had been accepted by Starwood, it would have been the largest ever acquisition made by a Chinese company in the US.

“We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.”

Following extensive due diligence and joint integration planning, Marriott expects to achieve $250m in annual cost synergies within two years after closing the deal, which is up from an estimated $200m last November when the original merger agreement was announced.

The combined company is expected to have 1.1 million rooms in more than 5,500 hotels.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Marriott and Starwood have already obtained regulatory consents necessary to close the transaction, including clearing pre-merger antitrust reviews in the US and Canada.

Starwood Hotels & Resorts Worldwide chairman of the board of directors Bruce Duncan said: “We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.”

Image: The combined company is expected to have 1.1 million rooms in more than 5,500 hotels. Photo: courtesy of Marriott International.